Five Steps to Secure Your Retirement

~ By Rick Kelly, CSA ~

Are you considering the purchase of a fixed annuity to help secure your retirement?

With so many annuity plans on the market today and so many people trying to sell them, it can be overwhelming trying to decide on which one best meets your needs!

The good news is that there is a Five-Step Process that you can follow that will help you make a wise decision!

The Five-Step Process:
There are five different styles of Fixed Annuities (FAs) available today:  MYGA, Traditional, Combination, Index, and LTC.  All five styles guarantee your principal and a minimum interest rate.  However, the actual interest you earn is based on the style you choose.

Step 1: Decide which style best fits your needs.
FAs offer several different withdrawal features including: Interest-Only Withdrawals, Lifetime Income Withdrawls,10% Withdrawals, Cumulative 10% Withdrawals, Systematic Withdrawals, Return of Premium Guarantees, Nursing Home Withdrawals, and Hospitalization Withdrawals.

Step 2: Decide what withdrawal features you will need to access your money.
FAs have early withdrawal charges that last for different terms (The surrender period).  At the end of the surrender period, you have 100% access to your money without any charges.  The early surrender terms can last anywhere from three years to ten years and even beyond.

Step 3: Decide how long of a term you want.
Not all insurance companies are created equal.  Search for the most competitive companies offering the combination of interest rate styles, withdrawal features, and term lengths that you want.

Step 4: Compare FA plans side by side.  
The safety of the insurance company is a key issue.  The safest insurance companies have top ratings from the rating services (A. M. Best, S & P, Moody’s, Fitch, and Weiss).  A long track record and a conservative investment portfolio are also vital.  Avoid companies that have high percentages of junk bonds.

Step 5: Choose safety first!
Don’t chase returns with lower rated companies.

If you’re going to purchase and annuity, follow this Five-Step Process to help you make a wise decision!

Richard Kelly

Rick Kelly

Rick Kelly is a Certified Senior Advisor with Futurity First-Summit Financial Group in Denver, CO.  He helps retirees secure the five pillars of retirement.  To request A FREE COPY of his Special Report, “The Annuity Educator,” call his toll-free 24-hour resource line right now at 303-800-7286 or email him at

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